House flipping is becoming less profitable. Good ...Middle East

Reservoirs are running dry, children are going hungry thanks to “Dickensian” levels of poverty, and 350,000 people are homeless – living rough, or in hostels or in temporary accommodation.

The under-supply in housing stock has been well-documented over many years. The present government has promised to get a grip of the situation by easing planning rules and facing down the Nimbys. Considering Labour’s U-turn record over the last year, there might be some scepticism as to whether they can see it through.

I imagine most homeowners occasionally feel smug about how the value of their house has increased. I might recognise my good fortune at having been able to get on the property ladder 20 years ago – but that awareness doesn’t stop me from popping onto Zoopla to check out what my house might be worth now, compared to what we paid for it. I am not in it for profit, but there is still a bit of me that thinks of my property not just as a home but as a financial asset.

And then there are the flippers: those people who snap up what seems to be an under-valued house, paper over the cracks and then flog it on at the highest margin possible. 

You might say this is just a free-market economy at work. You could argue that house-flipping improves tired housing stock. But as with second homes, the danger with flipping is that it distorts the market by placing the profit or investment motive at its heart.

square WILL GORE

Shorts in the office? Fine - but only if you stick to these rules

In an unrelated development, Britain’s biggest homebuilders this week agreed to pay £100m towards affordable homes to avoid a decision by the Competition and Markets Authority on whether they broke competition law by swapping sensitive information between them – a claim the homebuilding companies deny. It is more good news for those who would like to see a rebalancing of the market. 

But I will accept my place in property purgatory: better that than the entire market being dragged into house-flipping hell.

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